11. Multi-objective Robust Operation Model for a Supply Chain with Market Demands and Raw Material Price Uncertainty

In this paper, the operation of a multi-product and multi-period supply chain involving one producer and one supplier with uncertain market demands and raw material price is considered. With variations in the market demands and raw material price described by using an interval uncertainty method, a multi-objective robust optimization model is established using a robust linear programming approach. A numerical example is used to verify the proposed model, and the optimum robust operating strategy is determined for worst case supply chain conditions during an uncertain market demands and raw material price. When robust measures are adopted in the objectives of supply chain coordination and profit was maximized for all participants, the effect of market demands and raw material price uncertainty on objective values decreased significantly.